Netflix's $72 Billion Bid for Warner Bros. Discovery Faces Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy NFLX?
Source: Fool
- Acquisition Overview: Netflix's $72 billion acquisition deal with Warner Bros. Discovery, valued at nearly $83 billion on an enterprise basis, highlights the immense potential of both companies in the streaming and studio asset space, which could reshape the market landscape if successful.
- Competitor Dynamics: Losing bidder Paramount Skydance remains undeterred and continues to pursue all of Warner Bros. Discovery's assets, indicating the fierce competition in the streaming industry and the desire for market share.
- Regulatory Scrutiny Challenges: The U.S. Department of Justice and the Federal Trade Commission will closely examine the merger between Netflix and Warner Bros., which may impact the final outcome of the deal, particularly concerning consumer pricing and market power concerns.
- Market Reaction: Since Netflix emerged as a bidder, it has lost over $100 billion in market capitalization, reflecting investor concerns about the acquisition's prospects and highlighting the market's sensitivity to consolidation in the streaming industry.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 75.860
Low
92.00
Averages
129.47
High
152.50
Current: 75.860
Low
92.00
Averages
129.47
High
152.50
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Meeting Outlook: Warner Bros. plans to review Paramount's updated proposal, with a shareholder meeting expected to take place in late March or early April to vote, while Netflix aims to complete the acquisition within 12 to 18 months, but regulatory approval remains an uncertain factor.
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- Acquisition Controversy: Ancora plans to vote against Netflix's proposed acquisition of Warner Bros.' film and TV assets for nearly $83 billion in enterprise value, advocating for Warner to resume negotiations with Paramount, potentially delaying the acquisition process.
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